Community Health Systems, Inc. (CYH): This Pick And Shovel Stock Is Still A Value

Some analysts have a lowest price target on Community Health Systems, Inc. (NYSE:CYH) of $2, which would mean a -59.18% gain in value. The closing share price quoted for December 05, 2018 was $4.9. The -1.41% drop might have been tempting for an investor to sell at this point but in fact that would prove a short-sighted mistake, as sell-side analysts think there is almost 2.04% more gain yet to come for shareholders. Analysts seemed to set $5 as highest price target on its way to greater gains. The stock enjoyed an overall uptrend of 15.02% from the beginning of 2018. The average 12-month price target they expect from the stock is $3.35. This mean price target represents -31.63% downside over its previous closing price. The median price target they presented was $3 for the next 12-months, which suggests a -38.78% upside from current levels.

A fresh roundup today notes that CYH stock has added around 18.07% of its value in the past 12 months, suggesting more investors have expressed joy over about in that time period. If we turn to the Street in general, the negaitives still outweigh the positives as we can see that Community Health Systems, Inc. (CYH), have a sell (3.5) analyst consensus rating. In the current time, the stock has 1 buy and 8 hold ratings. The stock registered its 52-week high of $6.36 on February 16 and its 52-week low of $2.48 on October 15. Currently, the shares are trading $0.9 above its YTD moving average of $4.

Moving on, Community Health Systems, Inc. (CYH) last reported its September 2018 earnings. For brief highlights, it performed well in that quarter, with earnings up 113% year-over-year at $-1.64. The company surprised analysts by 61 who were expecting $-1.02 per share. Overall, its quarterly revenues dropped by -6% to reach $3.45 billion, while it had reported $3.67 billion in the same period a year ago. To see what investors should really expect from its December 2018 financial results consensus analyst estimates are calling for current quarter earnings per share of $-0.58, down from $-0.25 in the same quarter a year ago. However, earnings-per-share are expected to see growth of 14.4% in next year. From there, the company believes it can achieve a long-term annual earnings growth rate of -1.95 %. At the other end of the income statement, we have seen revenue of $13.76 billion over the trailing 12 months.

To help you decide whether it’s worth the wait (and the money), Community Health Systems, Inc. (NYSE:CYH) is currently trading at 0X the company’s trailing-12-month earnings per share, which represents a discount compared to the sector’s 30.88X and comes in below its industry’s 38.02X. The most popular method for valuing a stock is to study the historic Price-to-Earnings (P/E) ratio using reported earnings for the past 12 months. The EPS number for this stock in the most recent four quarters of earnings stood at $-21.75. P/E ratio is so popular because it’s simple, it’s effective, and, tautologically, because everyone uses it.

The 14-day Absolute ATR (Average True Range) on Wednesday, December 05 of 2018 shows that the price on average moves $0.3. The average daily volatility is 8.86% over the past week. Low volatility is good for the stock and it means we have calm and confident investors. If you check recent Community Health Systems, Inc. (CYH) volume, you will see that it has changed to 2.62 million shares versus the average daily volume of 2.16 million shares.

When you look at the daily chart for CYH, you will observe the stock held 23.12% gains in the 6-month period and maintains 97.58% distance from its most recent low. The past 5-day performance for the share stays positive at 29.29% but up 27.22% from its three-week moving average. Comparing to 50-day SMA, Community Health Systems, Inc. shares price is now up 46.2%. It also closed 28.84% higher from its 200-day SMA. This is often seen as the last line of defense for long term trends to find support at, else be considered broken and/or in a bear market. The daily chart of the stock more clearly reveals the slide in prices as it closed Wednesday with a 1-month performance at 36.11%.

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